According to a recent report by Korean media outlet ETNews, Samsung Electro-Mechanics and LG Innotek are accelerating their efforts in co-packaged optics (CPO) technology. Both companies have moved beyond the conceptual stage into early development and have begun testing samples of key substrate-related components, aiming to integrate CPO technology into AI semiconductor substrates.
It is reported that the two companies have conducted sample testing on critical components such as optical waveguides, which serve as the primary pathways for optical signal transmission. Although overall development remains at an early stage, both firms have increased investment and are advancing efforts to build in-house CPO capabilities. As major suppliers of semiconductor substrates, Samsung Electro-Mechanics and LG Innotek are primarily focused on developing and manufacturing substrates compatible with CPO. Their plans include integrating electro-optical switches, optical transceivers, optical cables, and waveguides directly onto the substrate to enable full CPO functionality.
Previous initiatives are closely aligned with these recent developments. Samsung Electro-Mechanics has announced expanded investment in embedded substrates, integrating passive components such as MLCCs directly into the substrate. Industry observers believe this approach could support future CPO implementation by optimizing substrate layout and creating space for optical component integration. At LG Innotek, CEO Moon Hyuk-soo referenced CPO development plans during last month’s shareholder meeting. While the project was still in the evaluation stage at that time, it has now formally entered active development, progressing toward large-scale commercialization.
Rising demand for CPO in AI data centers is driving accelerated investment across the semiconductor supply chain. TrendForce forecasts that CPO penetration in optical communication modules for AI data centers will continue to grow, potentially reaching 35% by 2030. Globally, chipmakers such as NVIDIA, Broadcom, and Marvell are advancing the integration of CPO with AI chips. Foundries including TSMC and Samsung are also preparing CPO packaging technologies, with TSMC targeting mass production within the year and Samsung aiming for 2028. OSAT leader ASE has likewise announced plans to begin CPO mass production this year.
According to TheElec, Samsung Foundry plans to introduce an optical engine based on thermocompression bonding in 2027, followed by a one-stop CPO service in 2029. Industry sources also note that Korea still lags behind overseas markets in CPO commercialization. As substrates represent a core component of CPO systems, related companies must accelerate technological breakthroughs to strengthen their competitive position.